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FHA

FHA: Federal Housing Administration - FHA short sales and FHA backed lending.

Found 28 blog entries about FHA.

HOME SALE CHALLENGE:

Just a year into their new home, this Simsbury, CT couple decided to part ways, but found themselves upside down in their mortgage and stuck in their property. Their only option to get out of the home was a short sale. 

REID REAL ESTATE GROUP APPROACH:

With a single FHA insured mortgage with Guild Mortgage, we anticipated a fairly smooth road ahead. FHA short sales are very predictable and smaller lenders like Guild generally have small but efficient loss mitigation departments that usually move quickly.   

RESULTS:

It took less than a month to secure a strong buyer for the property and as predicted, Guild went right to work on the short sale. Less than 2 months later our short sale was approved! We closed just a few…
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Short sales on martgages backed by FHA are a little different than your average short sale. FHA has their own short sale program called the PFS (pre-foreclosure sales) program. FHA follows their own specific guidelines for who qualifies and FHA keeps some pretty strict rules for their short sellers:

FOUR TIPS TO GET THROUGH YOUR SHORT SALE WITH FHA:

  1. DO NOT MOVE OUT UNLESS YOU HAVE AN EMPLOYMENT RELATED REASON TO DO SO: This is #1 for a reason! FHA provides help to owner occupants...not investor owners, or owners who left for ANY OTHER REASON. Even if you can no longer afford your loan, stay in the house! In the state of CT time is on your side. The only reason FHA sees as acceptable for you moving out is having to relocate for an employment
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HOME SALE CHALLENGE:

After several months on market our East Haven, CT homeowner found herself unable to clear her loan in a traditional sale. With over $30,000 of negative equity she realized her only option was to pursue a short sale. 

REID REAL ESTATE GROUP APPROACH:

Since our sellers loan was FHA we knew the short sale process itself would be quite predictable. However, Bank of America (the servicer on the loan) always makes everything ten times as difficult as it needs to be. Although our seller could easily qualify and be approved, we anticipated some headaches with Bank of America.  

RESULTS:

After re-listing the home as a short sale, it took just 2 weeks to secure a buyer. As expected, Bank of America began their shenanigans…
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HOME SALE CHALLENGE:

When these East Hartford, CT homeowners found themselves upside own, unable to afford their mortgage payments and needing to relocate, they realized their only option was to pursue a short sale. 

REID REAL ESTATE GROUP APPROACH:

Unfortunately these homeowners had an FHA loan with Wells Fargo. Wells Fargo has struggled painfully all year to get their act on track. Wells Fargo was once one of the easiest lenders to work short sales with, but then decided to fix what was working perfectly and processing of their short sales (especially FHA loans) has become an endless nightmare. While the sellers situation was pretty straightforward, we knew anything involving Wells Fargo would be a real challenge.  

RESULTS:

It took…
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HOME SALE CHALLENGE:

When these Torrington homeowners found themselves upside own, unable to afford their mortgage payments on their Wells Fargo FHA loan and wanting to leave the area, they realized their only option was to pursue a short sale. 

REID REAL ESTATE GROUP APPROACH:

It was only a year ago that Wells Fargo could deliver an FHA short sale approval painlessly in weeks...but oh how quickly things change. Unfortunately Wells has decided to fix what was working perfectly and processing of their FHA short sales has become an endless nightmare. While the sellers situation was pretty straightforward, we knew anything involving Wells Fargo would be a real challenge.  

RESULTS:

In the slower winter market it took almost 3 months to…
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HUD homes are homes that have been foreclosed on and now belong to the U.S. Department of Housing and Urban Development - these are generally homes that were once financed via FHA, VA and USDA loan products.
TIPS ON BUYING A HUD HOME:
  • Banks generally only care about the net proceeds of the sale, not the offer amount. There may be a certain amount of allowed closing assistance available, but keep in mind any and all reductions after the offer amount reduce the net to the lender.
  • When offering on these homes, keep in mind HUD Homes almost are almost always in multiple offer situations, especially once they come off the owner occupant grace period so you may want to write a strong offer.
  • Time is of the essence and if a buyer is not able to
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HOME SALE CHALLENGE:

After years of trying to work out a loan modification with his lender unsuccessfully, this Meriden, CT homeowner decided the only way to avoid foreclosure and move forward was with a short sale on his Greentree FHA Mortgage. 

REID REAL ESTATE GROUP APPROACH:

As the state's leading short sale experts, here at Reid Real Estate Group we have plenty of experience working FHA short sales and with Greentree. All sellers with FHA backed loans regardless of lender will have to meet the guidelines FHA has set for acceptance into their PFS (Pre-Foreclosure Sale) program. FHA short sales generally tend to follow the same predictable process although the experience certainly varies by servicer!

RESULTS:

It took 3 months and

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HOME SALE CHALLENGE:

When this North Haven, CT couple decided to move south for a new career opportunity, they found themselves upside down in their home and with no funds to make up the difference in a sale. With few options, they decided a short sale on their McCue FHA Mortgage was their best bet to move on gracefully and avoid foreclosure. 

REID REAL ESTATE GROUP APPROACH:

As the state's leading short sale experts, here at Reid Real Estate Group we have plenty of experience working short sales with McCue Mortgage. McCue tends to be very inconsistent, taking anywhere from 2 months to well over six to process their short sales and requires constant pressure to make things happen.  Also complicating matters was the fact that this FHA loan came

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istock_000015631251xsmall_406_06After several years of trying to work things out with their lender, this Marlborough CT couple was close to foreclosure and at their wits end. With next to no options left, they decided to attempt a short sale.

We listed the home which was well staged and priced aggressively and within 3 weeks a buyer was secured! Short sale documents headed to the both Suntrust and Chase for this FHA short sale.

Suntrust and Chase proved very slow, but with a lot of pushing prodding 5 months later our short sale approval letters arrived, and a month later this Marlborough, CT short sale closed!

OWED:$200,000 between a Suntrust FHA mortgage and a second with Chase

AAPROVED AND CLOSED: $150,000

TOTAL TIME FRAME LIST TO CLOSE: 7 months

Considering a CT short

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While Bank of America's FHA short sale department is generally a disaster, once in a while even they get it right....

A year after our initial consultation this New Britain homeowner called me to finally list his home. He had tried unsuccessfully to modify his loan and was ready to move on. The home went on market and just three short weeks later we secured a strong buyer for the home. FHA recently revised their Pre-Foreclosure Sales program to streamline more closely with conventional short sale programs. This made the program more flexible, however servicers generally take a long time to adapt to any changes to guidlines. I expected many months to get Bank of America to make a decision.

Despite this and the fact my client was current on his

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